Interesting article about Oil

wanghong

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Below is an Interesting article I found, which says that.....Do not
expect much from Crude Oil producers and future is not with the
! W  |) Z: _, `5 V2 u  `companies producing Jet fuels but Biofuels. Also no wonder if some of
these oil producer will go bankrupt or out of the business even if
# o3 W. P0 g' g. q- l* l; v1 wcrude prices improves. This implies also to good names such as Shell,
+ J: J  K( N( u3 F3 eEXXON, BG, BP, Cheveron ....xyz.. oils
0 u* V% h' A2 L; I7 l) o3 e3 M. ]
! x$ P- l! p, Z' dRecently OPEC reduced crude oil production twice over just a few
# b( n6 s* J) b4 h  M* Imonths. There are three wars going on in Gaza, Iraq and Afghandistan.
; M7 o$ Z8 p- ]- C* ^8 O3 yA year ago these things would have spiked the price of crude oil by at
least $50.00 per barrel. Today, oil price declined by a record amount.


There are several reasons the price of oil is decreasing in the face
9 y8 V( M  j6 Y4 ]# `' c4 bof so much news. These reasons are:


* A2 k  Q7 K3 b5 Q9 N3 N0 y5 _1. New oil has been found in Canada, Montana, North & South Dakota and
5 V% l  [7 @; Q% i2 P) Vin the ocean near Brazil. Each of these oil fields has more oil than
Arabia.
; x( u$ U& k+ ~8 T+ @3 y" o6 ^

2. New natural gas has been found in Pennsylvania and West Virginia.
$ T+ _, ?: [/ S: W, m6 u5 d0 g7 f9 L5 ~6 ?  |This is the largest find in North America.


3. New methods of injecting CO2 and surfactants into oil wells is
being used to double their output.


+ V! {$ u+ `5 i# N% _( S8 W7 t4. Production of bio-fuels is beginning to reach critical mass. Bio
5 l# O8 C+ I; U$ d; f; M2 Gfuel is being produced from many plants and algae. The production
( ]2 T0 ?/ {7 G# b, q. Mpotential per acre in some cases is astounding. Many countries are
% f( ~! N0 ^2 o1 i) K! Y0 Kracing to produce bio fuels.

% |0 |' \4 [& [! B: k+ w# [
1 U  O& K9 j' }4 ]4 b, M8 t5. Virtually every restaurant in the US and all food processing plants
: t3 C+ O, ]) Zare now selling their used oil to bio-diesel producers. Every pork,
cattle, turkey and chicken processing plant will soon sell their fat
& m4 R. d1 j9 R: z8 mto bio-diesel producers. One pork processing plant in Oklahoma is
# Y* w' w8 ]5 V6 }# `0 _producing 30,000 gallons of bio-diesel per day from pork fat.

3 F* Y# v1 G" ]. O
: f7 E( I: j: _( N+ W' n$ ~, i6. There are 99 nuclear reactors in various stages of planning and
8 B  K, [2 q7 W% O6 U: Pconstruction around the world at this time. Several hundred more are
expected to be built in the future. Much of the energy they produce
will replace oil.
' D( F5 K$ g, q( N3 s# j8 R
9 U" t* s3 _" l/ R- o" ^
) J/ K* c$ s1 F; U$ C7. Every company in any form of transportaion business is replacing
older equipment such as trucks, airplanes, train engines, ships, etc.
) i# z9 I9 z8 s6 I6 ywith new more fuel efficient equipment. Airlines and railway companies
) j8 u* e1 _' j3 d: h- \are experiencing 20% to 25% better fuel econony with the new
equipment.

, S- k1 M9 n# Z+ M3 ~! D# M# D+ W6 H; r
: Z8 E4 e4 E* C+ nAirlines are flying airplanes with bio-fuel. They are finding the bio-
fuel is cleaner and performs better than jet fuel.

1 t/ q9 l) U% H8 f0 l
+ s$ P/ C+ S. o5 U5 _3 ?6 c& S8. Cities and counties throughout the US are selling the rights to
: b) |& \- g/ g! M) a" Y; K# tcapture methane gas from landfills. This is a huge source of gas
available at very little cost or risk. The gas is displacing crude
oil.
' j8 _' L' P  t5 J
& y. `& [0 ]2 E# h( s9 P
. ?, m' c4 @# q; U. t6 w# W) g0 x2 w9. Coal is being transformed into a clean burning liquid fuel. The CO2
- k% B8 [0 O1 vproduced as a byproduct is sold to oil companies for injection into
oil wells.
' F& z3 Z- H& E2 i5 }" S

7 [1 ~% C, p5 g1 `: h: [( r10. Solar, wind and ocean energy is displacing oil as an energy
+ G) }8 O3 e9 v" t$ Jsource. Three new wind turbines are being erected every day in the US.


Each of the above by itself will not make a large difference in the
price of crude oil but the sum of all of them together is world
2 V/ p$ U: T* K/ p( w/ G, {/ r0 ~changing. The important thing is that OPEC no longer has the ability
5 ?! h5 Y, ?! Xto control oil prices.
' ]$ Q. u0 Q, a" @$ E
: j6 P8 E  c, L# x) k% N4 P
( a( v1 C8 b5 f* e8 CWith the above scenario, I still believe that there are under
performed OIL companies and probably they are yet to get the justified
value .....
- c: o+ c1 x9 [7 c, O9 o& [IAE- Ithaca , EPL Energy Partners Ltd, Opti etc ...
5 U$ k6 P& I+ z

The above articles are from WSJ .............PUBLISHED ON 9TH JAN
2009 ... FYI-Only